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Contract correct answers agreement between 2 or more parties creating obligations that are
enforceable in court or otherwise recognizable at law.
What questions should you consider about contracts? correct answers Is document employer
or employee friendly? What is effective duration from the employee's point of view? How
much discretion has the employer retained? What may be the worst provision for the
employee
How is a consulting agreement different from an employee agreement? correct answers
amount of control, compensation and benefits, duration of the relationship, nature of the
work.
Right to control correct answers whether the employee has control of the manner in which the
work is to be done or simply responsibility for a given result
Factors in legal distinction between independent contractor and employee correct answers 1.
right to control
2. terms of agreement
3. nature of the work or employee's "occupation" including the skill required for performance
and whether the employee is engaged in distinct occupation or business.
4. Whether employee supplies needed tools/equipment
5. whether payment is by hour or job
6. whether work is pat of regular business of the employer
7. whether the employer has the right to terminate the employment at any time.
Essential Elements of a Contract correct answers 1. Offer & Acceptance
2. Consideration
3. Competent Parties
4. Reality of Consent
5. Legal Purpose
what is it called when you break a contract? correct answers breach of contract
types of contracts correct answers written, oral, implied (quasi)
Contract Issues correct answers -lack of mutual assent
-illegal
-do not have mental capacity
-coercion
-fraud
-statute of frauds
-parole evidence rule
parol evidence rule correct answers A substantive rule of contracts under which a court will
not receive into evidence the parties' prior negotiations, prior agreements, or
,contemporaneous oral agreements if that evidence contradicts or varies the terms of the
parties' written contract.
Statute of Frauds correct answers A state statute under which certain types of contracts must
be in writing to be enforceable.
breach correct answers failing to perform any term of a contract, written or oral, without a
legitimate legal excuse; Damages may be awarded: expectation, liquidaded, consequential,
punitive
expectation damages correct answers actual damages, compensation for actual losses
liquidated damages correct answers A contract provides a specific amount to be paid as
damages in the event of future default or breach of contract.
Consequential Damages correct answers Special damages that compensate for a loss that is
not direct or immediate (for example, lost profits). The special damages must have been
reasonably foreseeable at the time the breach or injury occurred in order for the plaintiff to
collect them; usually not awarded.
Resident/Intern Contract Issues correct answers written is best, especially if longer than an
hour. restrictions for specification of hours are best. W-2 is best because certain benefits are
possible. Term should be defined (july 1-June 30).
stipend correct answers payment of living expenses during consideration
Pre-Employment issues correct answers 1. pre-existing restrictions on candidate?
2. compliance with common law obligations to former employers?
3. required skills
4. have the chemistry?
5. is the candidate willing to enter into a covenant?
Typical Term in Employment Contracts correct answers -term of employment
-capacity/duties/authority
-location of work
-compensation
-benefits
-stock
-termination provisions
convenants correct answers promises, legally
indemnification correct answers protection in case of lawsuit; who will pay damages
choice of law correct answers what state law will apply if a lawsuit ensues
integration clause correct answers merger clause, prevents saying that contract does not
reflect their understanding, is not consistent with prior agreements or cannot be changed by
later party
, ADR provision correct answers How we're going to resolve disputes; for example, arbitration
arbitration correct answers settling a dispute by agreeing to accept the decision of an
impartial outsider; compliance to arbitration is part of the ADR Provision
notice provision correct answers how info is delivered b/w parties to the contract
409A correct answers defers compensated plans; employee has binding right to an amount
but in which tax year it is given/applied to is specified
Incapacity correct answers family medical leave act and americans with disabilities act may
provide protections against this; termination provision
termination for cause correct answers job loss that occurs when an individual is fired from an
organization for a particular reason; the individual has usually been warned one or more
times about a problem and either cannot or will not correct it; may be listed in the contract
(felonies, violation of duty, etc)
termination w/o cause correct answers w/o contract, this may be allowed for any reason
except for those protected by law. usually specified in contracts.
resignation with good reason correct answers failure of company to abide by contract w/
certain time specified to fix the problem,
resignation w/o good reason correct answers terms of this may be specified in contract;
termination provision; ex. only gets payment for work only completed
death - termination provision correct answers terms about what happens = prorated payment
or how long a spouse may get paid
change of control correct answers termination provisions - what happens when a new owner
takes over
Restrictive Covenants correct answers In 1711, a rule was established the rule that one can
contract to refrain from engaging in a trade (non-compete clauses)
Types of restrictive covenants correct answers covenant against competition, against
solicitation, confidentiality, anti-piracy, business ideas/intellectual property agreement
non-compete correct answers not to compete for a particular period of time and in a particular
place. May be a clause or a separate contract. Enforceable if employer can prove they have a
business interest to protect.
Covenant against solicitation correct answers prohibits solicitation of former clients and
contacts if an employment agreement ends
confidentiality covenant correct answers prevents employee from talking about confidential
or proprietary information after employment termiantion
Solutions.
Contract correct answers agreement between 2 or more parties creating obligations that are
enforceable in court or otherwise recognizable at law.
What questions should you consider about contracts? correct answers Is document employer
or employee friendly? What is effective duration from the employee's point of view? How
much discretion has the employer retained? What may be the worst provision for the
employee
How is a consulting agreement different from an employee agreement? correct answers
amount of control, compensation and benefits, duration of the relationship, nature of the
work.
Right to control correct answers whether the employee has control of the manner in which the
work is to be done or simply responsibility for a given result
Factors in legal distinction between independent contractor and employee correct answers 1.
right to control
2. terms of agreement
3. nature of the work or employee's "occupation" including the skill required for performance
and whether the employee is engaged in distinct occupation or business.
4. Whether employee supplies needed tools/equipment
5. whether payment is by hour or job
6. whether work is pat of regular business of the employer
7. whether the employer has the right to terminate the employment at any time.
Essential Elements of a Contract correct answers 1. Offer & Acceptance
2. Consideration
3. Competent Parties
4. Reality of Consent
5. Legal Purpose
what is it called when you break a contract? correct answers breach of contract
types of contracts correct answers written, oral, implied (quasi)
Contract Issues correct answers -lack of mutual assent
-illegal
-do not have mental capacity
-coercion
-fraud
-statute of frauds
-parole evidence rule
parol evidence rule correct answers A substantive rule of contracts under which a court will
not receive into evidence the parties' prior negotiations, prior agreements, or
,contemporaneous oral agreements if that evidence contradicts or varies the terms of the
parties' written contract.
Statute of Frauds correct answers A state statute under which certain types of contracts must
be in writing to be enforceable.
breach correct answers failing to perform any term of a contract, written or oral, without a
legitimate legal excuse; Damages may be awarded: expectation, liquidaded, consequential,
punitive
expectation damages correct answers actual damages, compensation for actual losses
liquidated damages correct answers A contract provides a specific amount to be paid as
damages in the event of future default or breach of contract.
Consequential Damages correct answers Special damages that compensate for a loss that is
not direct or immediate (for example, lost profits). The special damages must have been
reasonably foreseeable at the time the breach or injury occurred in order for the plaintiff to
collect them; usually not awarded.
Resident/Intern Contract Issues correct answers written is best, especially if longer than an
hour. restrictions for specification of hours are best. W-2 is best because certain benefits are
possible. Term should be defined (july 1-June 30).
stipend correct answers payment of living expenses during consideration
Pre-Employment issues correct answers 1. pre-existing restrictions on candidate?
2. compliance with common law obligations to former employers?
3. required skills
4. have the chemistry?
5. is the candidate willing to enter into a covenant?
Typical Term in Employment Contracts correct answers -term of employment
-capacity/duties/authority
-location of work
-compensation
-benefits
-stock
-termination provisions
convenants correct answers promises, legally
indemnification correct answers protection in case of lawsuit; who will pay damages
choice of law correct answers what state law will apply if a lawsuit ensues
integration clause correct answers merger clause, prevents saying that contract does not
reflect their understanding, is not consistent with prior agreements or cannot be changed by
later party
, ADR provision correct answers How we're going to resolve disputes; for example, arbitration
arbitration correct answers settling a dispute by agreeing to accept the decision of an
impartial outsider; compliance to arbitration is part of the ADR Provision
notice provision correct answers how info is delivered b/w parties to the contract
409A correct answers defers compensated plans; employee has binding right to an amount
but in which tax year it is given/applied to is specified
Incapacity correct answers family medical leave act and americans with disabilities act may
provide protections against this; termination provision
termination for cause correct answers job loss that occurs when an individual is fired from an
organization for a particular reason; the individual has usually been warned one or more
times about a problem and either cannot or will not correct it; may be listed in the contract
(felonies, violation of duty, etc)
termination w/o cause correct answers w/o contract, this may be allowed for any reason
except for those protected by law. usually specified in contracts.
resignation with good reason correct answers failure of company to abide by contract w/
certain time specified to fix the problem,
resignation w/o good reason correct answers terms of this may be specified in contract;
termination provision; ex. only gets payment for work only completed
death - termination provision correct answers terms about what happens = prorated payment
or how long a spouse may get paid
change of control correct answers termination provisions - what happens when a new owner
takes over
Restrictive Covenants correct answers In 1711, a rule was established the rule that one can
contract to refrain from engaging in a trade (non-compete clauses)
Types of restrictive covenants correct answers covenant against competition, against
solicitation, confidentiality, anti-piracy, business ideas/intellectual property agreement
non-compete correct answers not to compete for a particular period of time and in a particular
place. May be a clause or a separate contract. Enforceable if employer can prove they have a
business interest to protect.
Covenant against solicitation correct answers prohibits solicitation of former clients and
contacts if an employment agreement ends
confidentiality covenant correct answers prevents employee from talking about confidential
or proprietary information after employment termiantion
